Goldman Sachs Is Buying General Motors’ Credit-Card Business. Here’s Why.

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View of General Motors in downtown Detroit


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Goldman Sachs

is diving deeper into consumer banking.

The bank is close to buying

General Motors

(ticker: GM) credit card business for roughly $2.5 billion, The Wall Street Journal reported Thursday. The expected deal comes one year after Goldman Sachs (GS) launched its first credit card with

Apple

(AAPL) and marks the bank’s continued efforts to diversify its offerings away from its storied investment banking history.

Back in January, at its first-ever investor day, Goldman Sachs discussed its plans to offer more consumer banking services. In April, it announced a deal with

JetBlue Airways

(JBLU) that would allow travelers to make installment payments for their trips on the bank’s MarcusPay platform.

Goldman’s deeper push into consumer lending comes at an interesting time. Other banks have set aside billions in reserves to protect against potential loan losses due to the

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